Confidence among New Zealand investors improved in the last quarter after dropping to its lowest levels since the Covid-19 pandemic during the previous quarter.
ASB shared the results of its Investor Confidence Survey this morning, which showed the difference between those who think investment returns will improve and those who believe they will worsen in the coming year.
The previous survey showed net investor confidence had dropped from 9% in Q1 to just 1% in the June quarter – the lowest level since the pandemic.
But today's results showed it was beginning to improve, jumping to 10% in the third quarter of 2025.
Investor confidence was highest in Auckland at 16%, while confidence for the rest of New Zealand was up to 7%. The South Island was at 8%. The lowest was the lower North Island at 3%.
ASB senior economist Chris Tennent-Brown said investor confidence had improved, and markets had recovered since the volatility earlier in the year. The Q2 drop in confidence followed New Zealand's GDP slumping 0.9%, driven by a "flat" housing market, share market volatility, and global economic uncertainty.
"That’s impacting sentiment positively now, but the flat housing market and lower term deposit rates continue to weigh on the mood," Tennent-Brown said.
Global political instability or uncertainty was again the biggest concern for investors, with 90% citing it as a key factor.
The survey found a "notable" decrease in those who said they were very or extremely concerned, with fewer investors considering or making adjustments to their portfolios. Around 53% chose not to make changes.
“What we’re seeing is that investors are becoming more accustomed to uncertainty.
"Based on our customers’ behaviour, most are choosing to stay the course and not make changes to their portfolios, even as global headlines continue to shift,” Tennent-Brown said.
One's own home was still considered the best investment overall, but that view was evolving, ASB found. Those who thought a home was the best investment dropped to 15% – the lowest level ASB had seen since it began the survey in 2015.
“While property is still on top, it’s with much less conviction than in the past. New Zealanders are still looking for signs of recovery in the housing market, but it’s clear that confidence in this traditional favourite is being challenged,” Tennent-Brown said.
Respondents under 30 were "clearly focused" on other investments, particularly the share market, where confidence had lifted "significantly", rising to 21% from 13% in the previous quarter. It was the area where Gen Z was most confident.
Overall managed investments "held steady" at 14%, just after KiwiSaver, which took over rental property and term deposits in perceived return. Public shares also gained favour with perceptions up to 12%.
Rental property, term deposits, and bank savings accounts "remain stable" but were no longer seen as stand-out choices.
“Looking ahead, the overall message is one of cautious optimism. While confidence has edged up, the underlying drivers of uncertainty, like global events, policy changes, and a sluggish property market, remain," Tennent-Brown said.
"Investors are adapting to a constantly changing global backdrop, and while the mood is more positive than last quarter, it is far from buoyant.”
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